Here's A 10-Second Guide To What Traders Are Chatting About Right Now

Dave Lutz of Stifel Nicolaus has a roundup of what traders are
chatting about ahead of the U.S. market open:

Good Morning! US Futures have been steadily sliding
lower, and now rest off about 40bp as VIX trading accelerates
(March Contract up 2% right now) – Main area of angst seems to be
Ukraine, with the CDS popping 10% as Russia offers “no comment”
on when they will release the next tranche of a pre-arranged $15B
bailout. Contagion is pressing Russia’s Ruble on record
lows against the €, and can be seen in the weaker FX of Turkey,
Hungary and South Africa as well. Eyes should
remain on Brazil, who’s equity market seems to be a favorite
target of EM short selling right now. EU
markets are lower, with the DAX off 75bp in very light trading
(20% below normal trends) – EU fins are off 1% as the Fed’s
Capital Rules sparking profit-taking, and we are seeing some
weakness in the PIIGS debt. In Asia, the Nikkei lost
50bp, but futures are off another 75bp as the $-Yen has given up
all of the BOJ’s induced gains from yesterday.
China’s market managed a 1% bounce, breaking upside of the 200dma
in heavy volumes. Aussie’s market bounced
small, but the Miners are finally seeing profittaking, with the
space off almost 1%. Keep an eye on the Retail group here
in the US, as CAGNY continues, and the XRT (Retail ETF) is in a
battle with the 200dma, and Homebuilders, as much negative
sentiment is built up into the Housing Starts and Permits number
this AM.

The 10YY is breaking lower, as we await the Fed Minutes - Traders
will be interested to see if the Fed has been discounting the
impact on activity from the “polar vortex”. The DXY is
higher, with the $ making gains against both € and Yen – causing
a slight headwind for commodities. Gold is weaker
despite headlines India preparing to cut the Import Tax on the
metal, while Energy’s tailwinds remain. Nat gas is surging
another 7% this AM as traders scramble for March paper on
collapsing supplies - WTI on YTD peaks into API data tonight, and
Brent buoyed by Geopolitical factors in Libya, South Sudan, and
Syria. A lot of eyes are on Coffee, after the biggest
surge in 10+ years yesterday due to Brazil’s drought – it is
adding another 1% this AM, and has gained almost 40% in the last
week. Scheduled Catalysts today include PPI, as
well as Housing Starts and Permits for January at 8:30, a Small
POMO at 11, Fed's Lockhart Speaks at 12:15, Fed's Bullard Speaks
at 1, and at 2pm the Fed Releases Minutes from Jan 28-29 FOMC
Meeting. After the close we get API data for the Crude
Complex, and Fed's Williams Speaks on the Economy in New York at
7pm tonight.